Are market valuations the most important factor for retirement income strategies?

By Wade Pfau, Ph.D., CFA, RICP®

The question remains as to whether historical withdrawal rates provide sufficient insight about what can reasonably be expected to work for more recent retirees.

Spending Amounts vs Spending Value

By Wade Pfau, Ph.D., CFA, RICP®

How much should you plan to spend each year in retirement? That depends in large part on your budget.

Fixed Time Horizons vs. Survival Probabilities for Retirement Planning

By Wade Pfau, Ph.D., CFA, RICP®

The planning horizon for the 4% rule is 30 years, but how long will your retirement really last?

Safety-First Retirements Are Expensive with Low Interest Rates

By Wade Pfau, Ph.D., CFA, RICP®

Building an inflation-protected spending floor in retirement can be incredibly expensive in a low interest rate environment.

Retirement Planning Guidelines: An Alternative to the Trinity Study

By Wade Pfau, Ph.D., CFA, RICP®

Today, I’d like to suggest an alternative table for prospective retirees to use. This table is based on the same data as the Trinity study table, but using Monte Carlo simulations instead of historical simulations.

Are Annuities (SPIAs) Okay When Interest Rates are Low?

By Wade Pfau, Ph.D., CFA, RICP®

Readers of my last blog entry, Annuities and Delayed Social Security, provided many valuable comments, prompting me to now write a follow-up post. Most of the discussion centered on a chart showing the relationship between annuity payout rates and interest rates. That…

Safe Retirement Income with TIPS and a deferred annuity

By Wade Pfau, Ph.D., CFA, RICP®

Coincidentally, a message I’ve been seeing repeatedly from many sources during the past week is the reminder that a strategy of using a bond ladder to provide one’s retirement income is still exposed to longevity risk. That is, using TIPS to provide…

Safe Withdrawal Rates and Life Expectancy, Part 2

By Wade Pfau, Ph.D., CFA, RICP®

Safe Withdrawal Rates and Life Expectancy, Part 2

Guidelines for Withdrawal Rates and Portfolio Safety During Retirement

By Wade Pfau, Ph.D., CFA, RICP®

A lot of retirement withdrawal rate studies are very repetitive and do not really offer anything new. This article offers a very nice graphical way of presenting its results.

“Making Retirement Income Last a Lifetime”

By Wade Pfau, Ph.D., CFA, RICP®

I’m now in the process of re-reading some of the classic studies on retirement planning.  As I am more involved in the research side of it now, doing this allows me to see points that I missed before or otherwise had just…

Getting on Track for Retirement

By Wade Pfau, Ph.D., CFA, RICP®

Those already late in their careers who are thinking seriously about retiring in the coming years may have been interested in the “safe savings rate” concept, but be left wondering how to apply it to their own personal situations. This new paper provides the answer about how to do this. 

Safe Savings Rates: A New Approach to Retirement Planning over the Lifecycle

By Wade Pfau, Ph.D., CFA, RICP®

Most retirement planning literature treats the working and retirement phases separately. My findings suggest that a fundamental rethink about retirement planning is needed.